What is the best ETF to buy right now?

There are lots of good ETFs to buy in any market environment. In July 2026, the Vanguard Growth ETF looked relatively more attractive than other top ETFs. Its price had underperformed the market over the past year (up about 18% by early July, compared with nearly 21% for the Vanguard 500 ETF and 32% for the Invesco QQQ Trust). The growth-focused ETF should deliver higher total returns over the long term as its holdings continue to grow their revenues at above-average rates.

What is the most successful ETF?

The most successful ETF over the last 10 years is the VanEck Semiconductor ETF (NASDAQ:SMH). The fund focuses on semiconductor stocks and has delivered an average annualized total return of 37.1% over the past decade. Of note, the top four best-performing ETFs over the last decade focused on semiconductors, while all 10 of the best performers focused on tech stocks.

Are ETFs still a good investment?

ETFs can be very good investments. Many ETFs enable you to invest passively in a broader stock market index at a low cost, allowing you to earn market returns. Other ETFs are great options for those seeking passive income from dividend stocks or bonds. ETFs can also help investors earn market-beating returns by investing in a sector or group of stocks growing at above-average rates (like semiconductor or technology stocks).

What ETF pays the highest dividend?

According to data from ETFdb.com, dozens of ETFs offer dividend yields in the double digits as of early July 2026. However, many of the ETFs with the highest dividends are very small leveraged ETFs, making them exceptionally risky. Even so, several ETFs stand out for their double-digit yields, which they deliver by writing options. For example, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) uses a covered call strategy to generate options income on the Nasdaq-100. Meanwhile, the NEOS S&P 500 High Income ETF (CBOE: SPYI) employs a similar strategy on the S&P 500.

What’s the difference between ETFs and mutual funds?

The main difference between ETFs and mutual funds is that ETFs trade like stocks. You can buy and sell them through your regular brokerage account with no minimum investment. Many mutual funds require that you purchase them directly from the sponsor or through a financial advisor. Many mutual funds also have an investment minimum that can exceed $1,000.

What is a good ETF for beginners?

A good ETF for beginners would be an index fund focused on the S&P 500, such as the Vanguard 500 ETF. It invests in 500 of the largest publicly traded companies in the U.S. and has a low expense ratio. Overall, it provides investors instant exposure to a diversified portfolio of top U.S. stocks at a very reasonable cost.

What is the best ETF to hold forever?

The best ETF to hold forever is an S&P 500 Index fund, such as the Vanguard 500 ETF. It provides broad exposure to the stock market at a very reasonable cost.

How much do I need to invest in ETFs to get $1,000 a month?

How much you need to invest in ETFs to get $1,000 a month in dividend income depends on the yield. For example, an S&P 500 index fund such as the Vanguard 500 ETF had a 1.05% yield in July 2026. At that rate, you'd need to invest over $1.1 million to generate $12,000 of dividend income each year to hit a $1,000 a month target (the fund pays dividends quarterly). However, you'd need to invest less in a higher-yielding ETF such as the Schwab U.S. Dividend Equity ETF. With a 3.29% yield as of early July 2026, you'd only need to invest about $370,000 into the Schwab U.S. Dividend Equity ETF to generate $12,000 of annual dividend income.

7 Best ETFs to Buy in July 2026

Exchange-traded funds tend to be less volatile than individual stocks and provide exposure to a broad range of opportunities.

By Matthew DiLallo – Updated Jul 1, 2026 at 4:07 PM EST | Fact-checked by Frank Bass

Key Points

ETFs allow investors to buy a portfolio of stocks or bonds, reducing risk compared to individual stocks.
Top ETFs include Vanguard S&P 500 and Invesco QQQ, which are known for low fees and broad market exposure.
ETFs like Schwab U.S. Dividend Equity offer high dividends, enhancing long-term investment returns.

Exchange-traded funds (ETFs) are investment vehicles that trade like a stock but give investors ownership of a broad range of stocks or other assets. ETFs offer investors an appealing alternative to owning individual stocks. They can also be great complements to an investor's stock portfolio.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

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There are all kinds of ETFs available. Some track major indexes, such as the S&P 500 or the Nasdaq Composite. Others give investors exposure to specific regions, such as China or emerging markets. And some ETFs concentrate on certain sectors, such as technology or banking, or specific types of stocks, like dividend or growth stocks. Additionally, some ETFs focus on investment themes, such as robotics, space, or quantum computing.

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An infographic outlining three reasons to consider investing in ETFs. — Image source: The Motley Fool.

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Data source: ETF.com. Data as of July 1, 2026.
Exchange-Traded Fund (ETF) and Ticker	Assets Under Management (AUM)	Expense Ratio	Description
Vanguard S&P 500 ETF (NYSEMKT:VOO)	$967.0 billion	0.03%	Fund that tracks the S&P 500
Invesco QQQ Trust (NASDAQ:QQQ)	$482.0 billion	0.18%	Fund that tracks the Nasdaq-100
Vanguard Growth ETF (NYSEMKT:VUG)	$219.9 billion	0.03%	ETF that invests in large-cap U.S. growth stocks
iShares Core S&P Small-Cap ETF (NYSEMKT:IJR)	$110.7 billion	0.06%	Fund that tracks the S&P SmallCap 600 index
Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD)	$96.4 billion	0.06%	ETF that invests in 100 high-yielding U.S. stocks with histories of increasing their dividends
Vanguard Total Stock Market ETF (NYSEMKT:VTI)	$657.9 billion	0.03%	Fund that holds more than 3,500 U.S. stocks of all sizes
iShares Core MSCI Total International Stock ETF (NASDAQ:IXUS)

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NYSEMKT: VOO

Vanguard S&P 500 ETF

Today's Change

(-0.34%) $-2.34

Current Price

$683.12

Key Data Points

Day's Range

$680.22 - $690.50

52wk Range

$567.98 - $699.15

Volume

5.1M

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Vanguard created the index fund. If you're looking for an S&P 500 index fund, the Vanguard S&P 500 ETF (VOO -0.07%) is hard to beat. It offers an ultra-low expense ratio of just 0.03%, compared to the 0.23% average for similar funds. This lower expense ratio means that, for every $10,000 invested in the fund, investors will pay just $3 in annual fees, versus $23 in a typical competing fund.

The Vanguard S&P 500 ETF is one of the largest and most popular ETFs. It was the largest ETF by assets under management (AUM) in July 2026 and had topped $1 trillion in assets in early June 2026. The ETF's combination of low costs and large size makes it an excellent choice for investing in the broader market. Because of its history, diversification, and exposure to blue chip stocks, many investors consider it one of the best ETFs to buy and hold.

The S&P 500 has an excellent track record of delivering returns for investors. Over the last 50 years, the average stock market return, as measured by the S&P 500, has been almost 10% with dividends reinvested. The Vanguard S&P 500 ETF is a low-cost way to capture the market's returns.

2. Invesco QQQ Trust

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NASDAQ: QQQ

Invesco QQQ Trust

Today's Change

(-1.62%) $-11.74

Current Price

$713.43

Key Data Points

Day's Range

$707.56 - $730.83

52wk Range

$549.58 - $748.65

Volume

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If you're looking to gain exposure to big tech stocks, Invesco QQQ Trust (QQQ -1.62%) is an excellent choice. The ETF tracks the Nasdaq-100 index, which includes 100 of the Nasdaq's largest nonfinancial companies.

The top stocks in the ETF are Nvidia (NVDA -1.39%), Apple (AAPL +4.88%), Microsoft (MSFT +1.69%), Broadcom (AVGO -2.47%), and Amazon (AMZN +0.55%). This large, top-performing ETF also boasts an affordable expense ratio of 0.18%.

As of July 2026, the Invesco QQQ Trust had generated a total return of nearly 620% over the past decade. To put that into perspective, a $10,000 investment made in this ETF 10 years ago would be worth almost $72,000 today.

The Nasdaq-100's focus on innovative technology companies positions it to continue delivering strong total returns, especially as artificial intelligence (AI) accelerates growth in the tech sector in the coming years.

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3. Vanguard Growth ETF

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NYSEMKT: VUG

Vanguard Growth ETF

Today's Change

(-0.65%) $-0.56

Current Price

$85.61

Key Data Points

Day's Range

$84.99 - $86.81

52wk Range

$69.63 - $90.60

Volume

135.7K

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If you want to invest in growth stocks but don't want to be an active stock picker, the Vanguard Growth ETF (VUG -0.65%) makes that easy. The ETF holds large-cap growth stocks and tracks the CRSP U.S. Large Cap Growth Index.

Like Invesco QQQ Trust and Vanguard S&P 500, the Vanguard Growth ETF's biggest holdings are Nvidia, Apple, and Microsoft. Those are just some of the 154 growth stocks the ETF held as of July 2026. The Vanguard Growth ETF offers a rock-bottom expense ratio of just 0.03%. Its low cost makes it a good deal for anyone looking for a growth stock ETF.

4. iShares Core S&P Small-Cap ETF

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NYSEMKT: IJR

iShares Core S&P Small-Cap ETF

Today's Change

(-0.77%) $-1.13

Current Price

$146.41

Key Data Points

Day's Range

$145.25 - $148.64

52wk Range

$107.08 - $149.35

Volume

171.6K

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NYSEMKT: SCHD

Schwab U.S. Dividend Equity ETF

Today's Change

(1.63%) $0.52

Current Price

$32.37

Key Data Points

Day's Range

$32.06 - $32.38

52wk Range

$26.21 - $32.91

Volume

451.8K

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Dividend stocks are great long-term investments. Over the last 50 years, dividend-paying companies outperformed nondividend payers by more than 2-to-1 (9.2% average annual total return versus 4.2% for nondividend payers, according to data from Ned Davis Research and Hartford Funds). The best performance came from dividend growers and initiators (10.2% versus 6.9% for companies with no change in their dividend policy).

The Schwab U.S. Dividend Equity ETF (SCHD +1.63%) provides exposure to high-yielding U.S. stocks with a history of dividend growth. It tracks the Dow Jones U.S. Dividend 100, which measures the performance of 100 top dividend stocks based on several quality characteristics, including dividned yield and five-year dividend growth rate. Among its 10 largest holdings in July 2026 were notable dividend payers Coca-Cola (KO +3.22%) and Verizon (VZ +1.37%).

The ETF offers a relatively attractive dividend yield. As of July 2026, it had a trailing-12-month yield of 3.3%, triple the 1.1% dividend yield of an S&P 500 index fund. And thanks to its low expense ratio of 0.06%, investors keep more of the ETF's dividend income. The fund should also deliver price appreciation as the underlying companies grow their earnings and dividends.

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6. Vanguard Total Stock Market ETF

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NYSEMKT: VTI

Vanguard Total Stock Market ETF

Today's Change

(-0.10%) $-0.35

Current Price

$368.92

Key Data Points

Day's Range

$366.20 - $372.11

52wk Range

$304.00 - $374.70

Volume

140.7K

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Although the S&P 500 is considered a broad-market index, it gives you exposure to only 500 large-cap U.S. stocks. If you want to own all the stocks in the U.S. market, the best way to do it is through a total stock market fund such as the Vanguard Total Stock Market ETF (VTI -0.10%).

As of July 2026, the fund held 3,484 companies, including large-, mid-, and small-cap stocks. Because its holdings encompass the S&P 500, its largest positions are the same as for the broad market index.

Vanguard Total Stock Market ETF aims to track the CRSP U.S. Total Stock Market index. Like other Vanguard funds, its low 0.03% expense ratio makes it an affordable way to invest in the entire U.S. stock market through a single ETF.

7. iShares Core MSCI Total International Stock ETF

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NASDAQ: IXUS

iShares Trust - iShares Core Msci Total International Stock ETF

Today's Change

(0.04%) $0.04

Current Price

$94.39

Key Data Points

Day's Range

$93.94 - $95.88

52wk Range

$75.96 - $97.93

Volume

1.1M

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Buying the best ETFs: FAQ

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About the Author

Matt DiLallo has been a contributing Motley Fool stock analyst specializing in the energy, industrials, and real estate sectors since 2012. He also covers dividend-paying stocks, pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

TMFmd19

@MatthewDiLallo

Matt DiLallo has positions in Amazon, Apple, Broadcom, Chevron, Schwab U.S. Dividend Equity ETF, and Verizon Communications and has the following options: short May 2026 $280 calls on Apple. The Motley Fool has positions in and recommends Amazon, Apple, Chevron, Microsoft, Nvidia, Vanguard Growth ETF, Vanguard S&P 500 ETF, Vanguard Total Stock Market ETF, and iShares Core S&P Small-Cap ETF. The Motley Fool recommends Broadcom and Verizon Communications. The Motley Fool has a disclosure policy.

7 Best ETFs to Buy in July 2026

Exchange-traded funds tend to be less volatile than individual stocks and provide exposure to a broad range of opportunities.

Key Points

Key Data Points

2. Invesco QQQ Trust

Key Data Points

3. Vanguard Growth ETF

Key Data Points

4. iShares Core S&P Small-Cap ETF

Key Data Points

Key Data Points

6. Vanguard Total Stock Market ETF

Key Data Points

7. iShares Core MSCI Total International Stock ETF

Key Data Points

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FAQ

2. Invesco QQQ Trust

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

What is the best ETF to buy right now?

What is the most successful ETF?

Are ETFs still a good investment?

What ETF pays the highest dividend?

What’s the difference between ETFs and mutual funds?

What is a good ETF for beginners?

What is the best ETF to hold forever?

How much do I need to invest in ETFs to get $1,000 a month?

4. iShares Core S&P Small-Cap ETF

5. Schwab U.S. Dividend Equity ETF

7. iShares Core MSCI Total International Stock ETF

Tax considerations for ETFs

Types of ETFs

Key Data Points